I feel like #2 isn't even on the table anymore. When they drop support for the A5 they will drop support for 32 bit chips all together. They can't drop support for the iPhone 5 yet (they were still selling it last year) so I think we have another year or 2 before they drop anything.
The iPhone 5 and 5C use the Apple A6 processor chip.
Glad to see the 5/5C still supported, although I wonder how it will impact speed on the older devices.